The second-quarter earnings season got underway yesterday as Alcoa (AA) reported its results after the close. As I predicted, the company report its third straight quarterly loss. For the April through June quarter, Alcoa lost 26 cents a share compared with a profit of 66 cents a share for the second-quarter of 2008. Sales dropped 41% to $4.24 billion.
Some analysts are pleased that Alcoa’s results came in better than expected. Not me. I see the company continuing to lose money for the next few quarters. If you own Alcoa, sell it as fast as you can.